Handling a dishonoured cheque

If a customer pays you by cheque and that check is dishonoured (bounces), you'll need to reflect this in MYOB.

If you bring bank transactions into MYOB via bank feeds or imported bank statements, a dishonoured cheque will show as two transactions:

• a deposit (when the cheque was originally paid into your bank account), then

• a withdrawal (after the bank processes the dishonour and takes the money from your account).

1. Unmatch the bank transaction

If the original customer payment you deposited into your bank account has been matched, unmatch it like this:

1. On the Banking menu, click Bank transactions. The Bank transactions page appears.

2. Find the transaction that corresponds to the dishonoured cheque.

3. Click the dropdown  arrow for the transaction and click Unmatch.

4. Click Save.

2. Delete the customer payment

1. On the Banking menu, click Find transactions. The Find transactions page appears.

2. Locate the customer payment where the dishonoured cheque was used as payment.

   1. Click the Transactions tab.

   2. For the Source Journal, choose Cash Receipts.

   3. Enter a date range in the From and To fields.

3. Click the reference number to open the payment transaction.

4. Click Delete.

5. Click Delete to the confirmation message.

3. Allocate the deposit and the withdrawal

1. On the Banking menu, click Bank transactions. The Bank transactions page appears.

2. Locate the withdrawal (the payment you deleted in the previous task).

3. In the Match or categorise column for that transaction, click Categorise me and choose the applicable category, like Bank Fees. Check with your accounting advisor if you're not sure which category to use.

4. Locate the deposit (the original payment received from the customer).

5. In the Match or categorise column for that transaction, click Categorise me and choose the same category you chose in step 3. This will cancel out the deposit for a net effect of $0 to the chosen category.